Buffett's Buying in a Big Way. That's Good.

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On the heels of an ugly day, what could be more bullish than a giant acquisition of a financial company, a pure play on the bond market, by

Berkshire Hathaway

(BRKA)

? Wow, this one will be awfully hard for bond and stock bears to swallow.

If all stocks are expensive, how could

Warren Buffett

pay this kind of premium for

General Re

(GRN) - Get Report

? If bonds are expensive, how could Buffett buy a huge bond owner? If insurance stocks are deflationary plays, how can Buffett buy GenRe unless he believes in the long-term deflationary scenario?

I am sure there is a way to paint this one as negative for the market that I haven't thought of, but I regarded it as a massive positive stunner -- the type of news that caused me to scramble to see if I could get more exposure out of stocks by exercising calls that I might have left to go out worthless.

Days like today, so driven as they are by expiration shenanigans,

Russell

rebalancings and

S&P

rebalancings, usually leave me clueless. I know I would like to read something into the fact that there were many more sell imbalances than buy imbalances at the close, but that's never made me a dime. I also know it was difficult to sort out the

Nasdaq's

strength with the S&P's weakness.

But Buffett's move is unequivocally bullish and because it involves his own worth, I found it reassuring, given my belief that things simply aren't that bad out there and that we are at the lower end of a trading range that will hold.

I will be redoing my

Amazon

(AMZN) - Get Report

piece for newbies tomorrow but will be taking a Father's Day break to see what the girls got me. I know my youngest kept telling me all week that there is a closet I should stay away from till Sunday. So I have my fingers crossed!!!

James J. Cramer is manager of a hedge fund and co-chairman of

TheStreet.com.

Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to TheStreet.com at

letters@thestreet.com.